TN: Union Budget Allocations Misleading; 10 Railway Projects Kept in Abeyance for Lack of Funds

Tamil Nadu, being a poll-bound state, found a prominent place in the Union budget 2021-22. The lack of clarity on contributions for the projects announced have failed to impress economists and people continue to remain sceptical about the tall claims of the Union Finance Minister. The numbers on provisions for highways, Chennai Metro Rail Limited (CMRL) and other railway projects are allegedly misleading. There is no allocation for the All India Institute for Medical Science (AIIMS), Madurai in the budget as well.

The  opposition parties have termed the budget as a step towards massive privatisation of public sector organisations, while the employees unions have already launched protests against the steps announced in the budget.

HIGH CLAIMS ON ROAD INFRASTRUCTURE

The work for the controversial Chennai-Salem eight-way green corridor road will begin this year, the finance minister announced in her speech. The project has been opposed by the farming community citing the loss of fertile lands and reserve forest areas in the route. The announcement could lead to the farmers in the affected areas to intensify their struggles against the project.

Anwar Hussain, an economist, told NewsClick, “The minister has announced a provision of Rs 1.03 lakh crores for 3,500 km long highway projects in the state. While verifying the details in the related websites, the total allocations for all the highway projects were mentioned as Rs 1.98 lakh crores. Moreover, the amount mentioned could be for the period of five years, but it is being put forth as the allocation for the next financial year, which is misleading”.

Another disappointing fact is the absence of announcement on the commencement of works on the AIIMS in Madurai. The long-pending project for which Prime Minister Narendra Modi laid the foundation stone in January 2019, ahead of the general elections, is yet to find light. The project cost is being revised to Rs 2,000 crores while the Union government is contributing only 15% of the cost.

‘CONTRIBUTION FOR CHENNAI METRO UNCLEAR’

The CMRL also found a mention in the budget, with the finance minister announcing the ‘central counterpart funding’ for the extension. The project cost for the 118.9-km phase across the Chennai city is estimated at Rs 63,246 crores. 

“The announcement as such is totally misleading,” R Elangovan, vice president of the Dakshin Railway Employees Union (DREU), told NewsClick. “The minister’s announcement is being projected like the Union government is taking care of the total project cost. But, in reality, apart from availing loans and funding from agencies like Japan International Cooperative Agency (JICA) and Asian development Bank (ADB), the remaining cost would be shared between the Union and state governments at a 50:50 ratio.”

The state government has already allocated Rs 3,321 crores for the phase, while there has been no contribution from the Union government so far. The massive announcements are made keeping in mind the upcoming assembly elections, claimed the trade unions. 

‘MORE RAILWAY PROJECTS STOPPED’

Another major thrust of the budget was on the infrastructure development in the railways, including the laying of new lines, doubling, electrification and freight corridors. The state has been awaiting 10 new lines, including the Chennai- Mahabalipuram-Cuddalore route for the past several years, while all are being kept in abeyance now.

“The government is making tall claims on developing rail infrastructure. But, the government is following ‘mega announcements and business as usual’ tactics to mislead people. Apart from many projects being kept in abeyance, the allocation for existing works are very low. Projects are getting inordinate delays due to lack of funds”, added Elangovan.

The claims on track renewal of 3,500 kms and doubling of around 1,500 kms are the usual norms, which are being boasted as huge achievements, the trade union leaders said. The threat of privatisation of corridors after being established with tax payers’ money is also looming large, they said.

“The government has decided to privatise 13 new routes in the state, out of which six originate from Tambaram station. The station itself is also planned to be privatised. We will oppose all such privatisation moves to save the railways and save the rights of the employees and the common people”, said Elangovan.

PROTESTS AGAINST MASS PRIVATISATION

The employees of railways and insurance held protests across the state against the privatisation moves. The All India Insurance Employees Union (AIIEA) and DREU opposed the announcements made in the budget.

The AIIEA has strongly opposed the increase of the Foreign Direct Investment cap from 49% to 74%. The decision to offer Initial Public Offer (IPO) for LIC has also created apprehensions among the employees and the policy holders. The union has termed the move as detrimental and claimed that such a move could affect the LIC as a whole. 

The DREU held a protest in front of the divisional office against the announcements of privatisation plans of freight corridors and railway routes. “The decision to privatise freight corridors, trains with air conditioned coaches are highly condemnable. The result of privatising profitable routes and retaining the loss-making routes will be a disaster,” said Elangovan.